Question
ABC reported the following capital structure on December 3, 2015, and the related results of operations for the year then ended: 1)-preferred shares,$6, cumulative, convertible
ABC reported the following capital structure on December 3, 2015, and the related results of operations for the year then ended:
1)-preferred shares,$6, cumulative, convertible into common shares at the rate of two common shares for each share of preferred; 2,000 shares outstanding all year $200,000
2)- common shares, 30,000 shares outstanding on January 1; 10,000 additional shares issued for cash on September 30,
200,000
3)- income from continuing operations. 195,000
4)- income from discontinued operations- 5,000
5)- Net income - 200,000
Show earnings per share of ABC as it should appear on the income statement of the company for 2015. Show all computations.
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